Paying for collision damage repair out of one’s own pocket is an option that is becoming popular with many people. Let’s examine the reasons favoring this view;
First, it is seemingly the easiest option out of trouble for anyone. It could avoid a raise in the premium/rates that one pay to the insurance. The time involved in dealing with the insurance company could be deemed longer than if one took the pay by pocket option. On a whole point of view much could be saved by paying out of pocket.
Secondly, there could be a possibility that the one liable does not have enough money with the insurance company to guarantee payment for the damages. Their thinking could be that the cost may rise with involvement of the insurance company.
Thirdly, the offender could be having another option to pay out. Consider a mechanic who could easily find the spare part cheaply and easily and use his know how to fix the problem professionally. This is more than a cheap option for this service provider. Some damages are just too minor that it becomes cost effective to pay them off by one’s cash. Such damages could only be costing hundreds of dollars.
The advantages with the above school of thought are; More time is saved. Time spend following up on the insurance protocol, body shops for repair, rental time among other things.
Decisions are made faster and easily and the problem settled easily. Consultations only involve the two parties. What works for them carries the day. While if the insurance company comes in, then third party interference needs to be catered for, the policies, rules and regulations of the third party take the lead to the solution
As good as paying from the pocket seems, there are other areas to check out for before finally making up your mind on which direction to take.
First, there could be damages caused that are major and one may not have the finances needed to clear off payment for such major repairs. In this case one may not have an option but to inform the insurance of the damage and let the insurance handle the case their own way.
Secondly, consider what would happen if you paid for damages from your pocket and the insurance company discovered about your dealings from a third party. The probable thing would be a sanction on you, probably a strike.
Thirdly, dealing with insurance companies provides the safest means to compensate for any damages. Apart from being safe, the experience that comes with the dealers in the insurance industry will reduce the risk of any undue exploitation.
Consider the amount in terms of premiums paid to the insurance company. At best this contribution is meant to cover your liability. It is your right especially if you are on the right. There are times that the insurance may decide to waiver any liability on your side so that you do not actually meet any expenses for the damages. The above are the pros and cons of either paying from the pocket or going the insurance way. Weigh your options and make the right decision.